Missouri Senate

Senate Committee Substitute

SECTION 135.633 - Tax Credit for MELO Accreditation

This act creates a tax credit for odor abatement activities by concentrated animal feeding operations. The tax credit shall be equal to either: 1) the lesser of fifty percent of the eligible expense incurred by a producer to achieve Managed Environment Livestock Operation (MELO) accreditation or fifty thousand dollars; or 2) the lesser of seventy-five percent of the eligible expense incurred by a producer to meet preferred environmental practices or seventy-five thousand dollars. The tax credit is fully transferable, non-refundable, and may be carried back three years or forward five years until fully claimed. The cumulative amount of tax credits issued by the Missouri Agricultural and Small Business Development Authority to all taxpayers in any fiscal year shall not exceed $300,000. The Department of Agriculture shall promulgate rules to create the MELO accreditation program. The provisions of this section shall expire three years from the effective date of the Department's MELO rules.

This section is similar to HB 881 (2007) and SB 643 (2007).

SECTIONS 135.800-135.805 - Tax Reporting Requirements

This act makes the Family Farm Breeding Livestock Loan tax credit and the Qualified Beef tax credit subject to the same reporting requirements as what is required for agricultural tax credits under the Tax Credit Accountability Act. The act also requires new generation cooperatives to report under the Tax Credit Accountability Act, when an agricultural tax credit is issued as a result of a producer member investing in the cooperative.

These sections are similar to SB 503 (2007) and HB 840 (2007).

SECTION 142.028 - Qualified Biomass for Fuel Ethanol

Under current law, a qualified fuel ethanol producer is eligible for a monthly grant for fuel ethanol produced from Missouri agricultural products. This act allows such fuel ethanol to also be produced from biomass that is qualified by the Missouri Agricultural and Small Business Development Authority (MASBDA) in consultation with the Conservation Commission. Fuel ethanol grant incentives paid for fuel ethanol produced from biomass are authorized between January 1, 2009 and December 31, 2019 and shall only be available to two producers, with each producer limited to total payments of $7.5 million.

This section is similar to HCS/HB 709 (2007) and SCS/SB 499 (2007).

SECTION 144.053 - Sales Tax Exemption for Forestry Equipment

Any new or used farm tractors, machinery, or equipment, including parts, supplies, and fuel, used to plant, harvest, process, or transport forestry products shall be exempt from state and local sales tax, similar to other farm machinery in section 144.030.

This section is similar to HCS/SCS/SB 156 (2007).

SECTION 144.063 - Sales Tax Exemption for Fencing

This act creates a sales tax exemption for the purchase of fencing materials for agricultural purposes, which shall sunset after 6 years.

This section is similar to HB 711 (2007) and HB 477 (2007).

SECTION 144.065 - Sales Tax Exemption for Agricultural Motor Fuel

This section creates a sales tax exemption for the purchase of motor fuel for agricultural purposes, which shall sunset after 6 years.

This section is similar to HB 323 (2007).

SECTION 260.546 - Hazardous Substance Spill Cleanup

Current law makes an owner of a released hazardous substance liable for reasonable cleanup costs. This act adds the requirement that the costs for which the owner is liable also be "necessary." The act adds costs incurred for cleaning up any hazardous substances to the costs for which an owner is liable.

The act specifies a 60-day timeframe in which the political subdivision or volunteer fire protection association involved in the cleanup must submit the itemized statement of costs to the owner of the released substance. The statement of costs must include certain explanations for why the costs were incurred.

In the event of an appeal by the owner of the released hazardous substance, the burden of proof is on the political subdivision or volunteer fire protection association to justify the cleanup costs.

The act increases the timeframe from 30 days to 60 days in which the Director of the Department of Natural Resources must notify the involved parties of his or her decision regarding an appeal.

This section is similar to SB 316 (2007), HB 343 (2007) and SB 1158 (2006).

SECTIONS 261.035-261.239 and 265.200 - Dept. of Ag. Name Changes

The act makes the following name changes in the Department of Agriculture: the Marketing Division to the "Agriculture Business Development Division;" the Marketing Development Fund to the "Agriculture Business Development Fund;" the Missouri Agricultural Products Marketing Development Fund to the "AgriMissouri Fund;" and the Citizen's Advisory Commission for Marketing Missouri Agricultural Products to the "AgriMissouri Advisory Commission."

These sections are similar to HB 841 (2007) and SB 488 (2007).

SECTION 263.232 - Noxious Weed Control

This act makes the plants spotted knapweed and sericea lespedeza subject to existing noxious weed control laws.

This section is similar to HCS/HB 244 (2007).

SECTIONS 348.230-348.235 - Dairies

Subject to appropriation not to exceed $250,000, the Missouri Agricultural and Small Business Development Authority (MASBDA) shall pay for the first full year of interest on any applicable Missouri linked deposit program loan, provided the loan pertains to the acquisition of dairy cows. MASBDA may charge a fee up to $50 for this service.

Subject to appropriation not to exceed $50,000, MASBDA shall award dairy business planning grants for up to $5,000 per grant or no greater than 90% of the cost of the plan, whichever is less. MASBDA may charge a fee up to $50 to apply for a grant. Eligible applicants for the grants shall be existing or start-up dairy operations in Missouri that are at least 51% owned by Missouri residents. MASBDA may promulgate rules for the grant program to establish eligibility and award criteria.

These sections are similar to SB 444 (2007), SB 471 (2007), and HCS/HB 346 (2007).

SECTIONS 348.430-348.432 - "In State" Requirement

A new generation cooperative must operate within the state in order to be eligible for either the Agricultural Product Utilization Contributor tax credit or the New Generation Cooperative Incentive tax credit.

These sections are similar to SB 503 (2007) and HB 840 (2007).

SECTION 348.505 - Tax Credit Maximum Increase

The total cumulative amount of tax credits issued by MASBDA per fiscal year for interest waived for family farm livestock loans is increased from $150,000 to $300,000.

This section is similar to HB 748 (2007).

ERIKA JAQUES